Bank of China contributes to a €2.5 billion EUR syndicated revolving credit facility to Fortum Oyj for general corporate and refinancing purposes (Linked to Record ID#102126)

Project narrative

On July 11, 2011, a syndicate of 20 banks — including the Bank of China (BOC) — signed a €2.500 billion EUR syndicated Revolving Credit Facility (RCF) agreement with Fortum Oyj (Fortum Corporation) — a Finnish power and heating company publicly traded by majority-owned by the Government of Finland — for general corporate and refinancing purposes. This RCF carried a maturity period of five years with a two one-year extension options, a final maturity date in July 2016, and an interest rate based on an unspecified rate plus a margin of 0.375% per annum. This RCF also carried a utilization fee of 0.15% per annum if over one-third of the RCF was drawn and 0.30% per annum if over two-thirds of the RCF was drawn. The proceeds of this RCF were to be used by the borrower to refinance two existing loan facilities, a €1.2 billion EUR RCF signed in December 2004 and a €1.5 billion EUR signed in April 2008, and for general corporate purposes. Record ID#102125 captures BOC's contribution. In addition to BOC, the following lenders contributed to the loan syndicate: Barclays Capital, Nordea Bank Abp, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), BNP Paribas S.A., Citibank, Danske Bank A/S, Deutsche Bank, DnB NOR ASA, Svenska Handelsbanken AB, ING Group N.V., Intesa Sanpaolo S.p.A., Mizuho Bank, Morgan Stanley, Pohjola Bank PLC, The Royal Bank of Scotland (RBS), Skandinaviska Enskilda Banken AB (SEB), Société Générale S.A., Swedbank, and Unicredit S.p.A. Barclays Capital and Nordea served as coordinators; the other banks served as participants. Syndication brought commitments of €4.000 billion EUR from banks. As of December 31, 2011, there was no outstanding balance for this RCF. As of December 31, 2012, there was no outstanding balance for this RCF. In June 2013, the face value of the RCF was reduced to €2.0 billion EUR. In 2013, the lending syndicate entered into an amendment agreement with Fortum; in this amendment, the maturity period of €1.9 billion EUR of the RCF was extended by one year — for a new maturity period of six years — and a new maturity date of July 2017, in line with the extension option. Record ID#102126 captures BOC's contribution to this debt rescheduling. As of December 31, 2013, there was outstanding balance under the reduced RCF. As of December 31, 2014, there was no outstanding balance. As of December 31, 2015, there was no outstanding balance under this loan. On June 16, 2016, Fortum entered into a €1.750 billion EUR syndicated RCF with a syndicate of banks for general corporate purposes; as a result of its entry into this RCF, Fortum cancelled the €2.5 billion EUR RCF.